Bankruptcy

As the clock starts to tick for Harrisburg to act, local officials are parsing through a 418-page fiscal recovery plan that recommends the cash-strapped Pennsylvania city sell its incinerator and sell or lease other assets to pay down $220 million of outstanding debt tied to the facility.

CHICAGO - One of Michigan's top bond firms has launched a program to help fiscally stressed local governments navigate a slew of new laws crafted by Gov. Rick Snyder and passed by the Legislature this year.

The Houston Independent School District may join in a lawsuit against Texas over inequities in the state's school finance system, board president Paula Harris said last week at a news conference.

A long-awaited fiscal recovery plan issued Monday urges Harrisburg, Pennsylvania's capital city, to avoid a filing for bankruptcy and look toward asset sales and leases to get out from under its incinerator debt.

BRADENTON, Fla. - Jefferson County ordered that plans to place nearly 1,000 employees on administrative leave without pay be prepared this week as the government struggles to stay solvent through the fiscal year end.

DALLAS — The plan to balance Oklahoma's $6.5 billion budget with a diversion of highway tax revenues has been challenged as unconstitutional by an Oklahoma City attorney.

WALNUT CREEK, Calif. — California's largest conduit bond issuer and its private contractor are on the defensive after recent attacks on its roles both in and out of the state.

Sierra Kings Health Care District voters Tuesday overwhelmingly approved a proposed sale of the bankrupt hospital to Adventist Health.

California Controller John Chiang has said he will withhold lawmakers’ salaries if they fail to pass a balanced budget by June 15.

A court-appointed judicial hearing officer has determined that e-mails sent between New York Insurance Department officials showed bias regarding the restructuring of bond insurer MBIA Insurance Corp.

The proposed $1.2 billion University Medical Center in New Orleans may be built with the proceeds from bonds supported solely by hospital revenue if federal mortgage insurance is denied for the debt.

Former Jefferson County commissioner Chris McNair on Monday reported to a federal prison in Illinois to begin a five-year sentence for corruption related to contracts for rebuilding the county’s sewer system, according to the Birmingham News.

CHICAGO — Following passage of a new state law aimed at assuaging investor fears of bankruptcy, the city of Ecorse next week will sell $9.3 million of financial recovery bonds, making it one of Michigan’s only municipalities to enter the bond market while under state-controlled receivership.

Rhode Island lawmakers are considering a package of bills related to municipal bankruptcies.

The State Board of Accountancy has dropped its investigation into whether Surprise chief financial officer Scott McCarty unlawfully claimed he was a certified public accountant in Arizona.

WASHINGTON Three former officials from CDR Financial Products Inc. are urging a federal judge to dismiss the Justice Department’s charges against them, arguing prosecutors should not proceed to trial on a fraud theory the Supreme Court rejected last year.

CHICAGO — The Metropolitan St. Louis Sewer District has submitted a proposal to its rate-setting commission asking voters for authority to issue $945 million of bonds in coming years to fund capital projects, many of which are required under a tentative $4.7 billion agreement reached with federal authorities to settle a lawsuit.

SAN FRANCISCO — Stockton may not exactly be the next Vallejo, but similarities between the two California cities have started people talking.

Regulators denied Ambac Assurance Corp.’s requests that it be allowed to pay interest on all its outstanding surplus notes due June 7.

CHICAGO — The St. Paul Port Authority and lawyers for a group of investors who hold a portion of its 876 Fund economic development revenue bonds will return to court later this month as litigation proceeds over the fate of $51 million of defaulted debt.